Farfan and Mendes inventory item is Silverware. Its accounting term is January to December.

HST is charged at 13 Percent

Farfan and Mendes
Post Closing Trial Balance
December 31st 2019
Cash	23500
AR - McKing Cutlery	5000
AR - Durban Silverwares	7500
Inventory	6900
Unused Supplies	1300
Prepaid insurance	1250
Equipment	3500
Furniture	4500
Building	20500
Accumulated Amortization - Building		2050
Land	18600
AP - KS Manufacturing		11200
Notes Payable, Short Term		10000
Interest Payable (Notes Payable)		600
HST Payable		1250
CPP Payable		850
EI Payable		435
Income Tax Payable		1560
Unearned Revenue		1000
Bank Loan, Long Term		20000
Share Capital		43605
Balance	$92,550.00	$92,550.00

	Transactions in 2020 (round values to 2 decimal places).
1	Dividends were paid for $1,500
2	Earned revenue previously unearned from Mcking Cutlery $500.
3	Purchased Silverwares from KS Manufacturing for $18,500 plus hst on account. Term N/30. Paid for shipment $150 plus hst
4	File HST return with Receiver General. Pay HST Payable in 2011.
5	Prepaid insurance was used up in the amount of $750
6	Made payment of note payable, and Interest payable plus interest for an additional 6 months at 12% interest rate.
7	Sold Silverwares to Durban Silverware for $16,200 plus hst on account. Terms 2/15, N/45. a. Cost of silverwares sold is $9,000. b. Paid shipment $300 plus HST
	c. Estimated Warranty on Silverwares is 3% on sales revenue.
8	Durban Silverware returned $3,000 plus HST in Silverware. Cost of goods returned is $1,700.
9	Received payment in full from Durban Silverware. Transaction reference 7. Less return and discount.
10	Filed payroll return with payment of CPP, EI and Income Tax to Receiver General.
11	Received from McKing Cutlery, $5,000 as payment on his account. No discount.
12	Bank Returned cheque as NSF cheque for $5,000 plus $50 as NSF Fees. Invoiced Mcking Cutlery including NSF fee charged by bank.
13	2% of $5050 is estimated to be doubtful for McKing Cutlery
14	Sold Silverwares to Durban Silverware for $20,000 plus HST, on account. Terms 2/15, N/45. a. Cost of Silverwares sold is $12,500. b. Paid shipment $600 plus hst
15	Some operating Expenses paid:
	Utilities	$1,400 plus HST
	Telephone	$1,500 plus HST
	Internet	$1,400 plus HST
	Repair & Maintenance	$850 plus HST
16	Payroll completed. a. Gross Pay (salary) is $7,500 b. EI employee $137.25 c. CPP employee $356.81 d. Income tax employee $1,869.87 e. EI employer $192.15 f. CPP employer $356.81 g. Cash payment - $5,136.07
17	Building depreciated by $2,050
18 19	Supplies used up value $700. Cash Sales equals $12,000 + HST. Cost of goods sold is $5,000.
Requirements:
1	Prepare General Journal Entries for 2020.
2	Setup Ledger Accounts (existing then new) and post entries.
3	Transfer balances to 2020Trial Balance